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Extraído del Informe Consolidado
Esta investigación fue publicada originalmente como parte de un informe consolidado más amplio que contiene múltiples investigaciones. Consulte el PDF consolidado para ver el documento completo.
Mendocino County Grand Jury
• 2005-2006
Dollars and Sense: a Report on Retirement Funding
⚠️ Aviso de traducción: Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 17 findings
F1
Page 55
The Board of Supervisors (BOS) must approve any negotiated new or increased pension benefits.
Related Recommendations (1)
R3
Page 54
the BOS include Department heads responsible for the financial health of the County in its discussion of retirement obligation decisions. (Finding 1-3, 6) 5 Mendocino County Employees' Retirement Association - Report on the Actuarial Valuation as of June 30, 2005 6 Mendocino County Employees' Retirement Association - June 30, 2005 Experience Study Report, Pages 3 and 4. County of Mendocino Audit Report -- June 30, 2005, http://www.co.mendocino.ca.us/auditor/pdf/05%20Mendocino%20GASB34%20afs%20- %20FINAL%2019Apr06.pdf 8 County of Mendocino Audit Report -- June 30, 2005, http://www.co.mendocino.ca.us/auditor/pdf/05%20Mendocino%20GASB34%20afs%20- %20FINAL%2019Apr06.pdf 9 Mendocino County Employees' Retirement Association - June 30, 2005 Experience Study Report, -2—6
F2
Page 55
While the BOS has sought input from actuaries in making pension benefit decisions, the BOS has not always consulted with County financial officials before approving new plans.
Related Recommendations (2)
R3
Page 54
the BOS include Department heads responsible for the financial health of the County in its discussion of retirement obligation decisions. (Finding 1-3, 6) 5 Mendocino County Employees' Retirement Association - Report on the Actuarial Valuation as of June 30, 2005 6 Mendocino County Employees' Retirement Association - June 30, 2005 Experience Study Report, Pages 3 and 4. County of Mendocino Audit Report -- June 30, 2005, http://www.co.mendocino.ca.us/auditor/pdf/05%20Mendocino%20GASB34%20afs%20- %20FINAL%2019Apr06.pdf 8 County of Mendocino Audit Report -- June 30, 2005, http://www.co.mendocino.ca.us/auditor/pdf/05%20Mendocino%20GASB34%20afs%20- %20FINAL%2019Apr06.pdf 9 Mendocino County Employees' Retirement Association - June 30, 2005 Experience Study Report, -2—6
R4
Page 54
the BOS ensure that future employee benefits do not overburden the County with pension obligation debt. (Findings 2, 3, 12, 17) Comments Mendocino County is not alone in facing the issue of affordability of its pension plans; there is now a considerable national debate going on about this problem. Issued in order to pay current obligations and expenses, the POB must be paid. The current obligation is the present value of future promised retirement payments. In accounting, this is a very real current expense that is no different from salaries or office equipment. Publication of County pension fund numbers are not conveniently summarized in one document but are found in portions of several documents. The reasons for separating the calculations of County and MCERA operations may be sound accounting, but their financial results should be combined and made available for easier public understanding. Appendix C, Table 1 presents important numbers supplied by county officials for the Grand Jury’s oversight. The charts shown in Figures 1, 2 and 3 depict some of this data as well. Responses Required: Mendocino County Board of Supervisors (All Findings and Recommendations) CEO, Mendocino County (All Findings and Recommendations) Mendocino County Auditor/Controller (All Findings and Recommendations) Mendocino County Treasurer/Tax Collector (All Findings and Recommendations) Mendocino County Employee Retirement Association (All Findings and Recommendations) Mendocino County Department of Human Resources (Findings 5, 6, 11, 16, 17, Recommendation 4)
F3
Page 55
The decision by the BOS to retroactively, and without employee buy-in cost, reclassify Safety employees so as to give them higher-level benefit rates resulted in higher pension obligations.
Related Recommendations (1)
R3
Page 54
the BOS include Department heads responsible for the financial health of the County in its discussion of retirement obligation decisions. (Finding 1-3, 6) 5 Mendocino County Employees' Retirement Association - Report on the Actuarial Valuation as of June 30, 2005 6 Mendocino County Employees' Retirement Association - June 30, 2005 Experience Study Report, Pages 3 and 4. County of Mendocino Audit Report -- June 30, 2005, http://www.co.mendocino.ca.us/auditor/pdf/05%20Mendocino%20GASB34%20afs%20- %20FINAL%2019Apr06.pdf 8 County of Mendocino Audit Report -- June 30, 2005, http://www.co.mendocino.ca.us/auditor/pdf/05%20Mendocino%20GASB34%20afs%20- %20FINAL%2019Apr06.pdf 9 Mendocino County Employees' Retirement Association - June 30, 2005 Experience Study Report, -2—6
F4
Page 55
The decision in 1998 by the BOS to no longer fund post-retirement health insurance benefits for future hires resulted in a reduction of County liability.
No recommendations for this finding
F5
Page 55
Disability retirement payouts begin immediately upon determination and are significantly higher than regular retirement benefits.
No recommendations for this finding
F6
Page 55
Disability retirements have been increasing in the last 10 years.
No recommendations for this finding
F7
Page 55
County financial officials have estimated that the total debt for retirement has peaked and should soon show a steady reduction. Their estimate is that, when the current POB is fully paid in 2026, the MCERA funding level will be at what the County believes to be a fiscally responsible level, that is, at 90% of Actuarial Accrued Liability (AAL), meaning that 10% falls into the category of Unfunded Actuarial Accrued Liability (UAAL).
Related Recommendations (2)
R1
Page 54
the Auditor-Controller publish yearly a County Retirement Funding report to summarize the status of assets and liabilities of both the County and of MCERA, and to present the actual total numbers for the previous five years and projections for the upcoming five years, based upon current performance. (See Appendix C, Table 1). (Findings 7, 8, 11-14)
R2
Page 54
the BOS consider increasing the County’s payment to MCERA to lower the debt at a faster rate. (Finding 7)
F8
Page 55
The total County financial picture regarding retirement benefit funding and debt can only be gained by reviewing the reports from both MCERA and the County budget.
No recommendations for this finding
F9
Page 55
The AAL for pensions is affected by the value of promised benefits to employees. County Administration and labor representatives negotiate periodically these promised benefits. -2—6
No recommendations for this finding
F10
Page 56
The pension fund assets are invested by MCERA until they are needed for a pension payout to retirees.
No recommendations for this finding
F11
Page 56
The County’s contribution to MCERA for 2004-2005 was approximately $9,197,000. The employees’ contribution for this year was approximately $5,622,000.5 As of June 30, 2005 there were 1,333 active and 394 inactive employees in-rolled in the County's pension plan.6
Related Recommendations (1)
R1
Page 54
the Auditor-Controller publish yearly a County Retirement Funding report to summarize the status of assets and liabilities of both the County and of MCERA, and to present the actual total numbers for the previous five years and projections for the upcoming five years, based upon current performance. (See Appendix C, Table 1). (Findings 7, 8, 11-14)
F12
Page 56
The UAAL has not been recognized as a debt, so it is not included in any of the actual debt service payments made by the County.
Related Recommendations (1)
R1
Page 54
the Auditor-Controller publish yearly a County Retirement Funding report to summarize the status of assets and liabilities of both the County and of MCERA, and to present the actual total numbers for the previous five years and projections for the upcoming five years, based upon current performance. (See Appendix C, Table 1). (Findings 7, 8, 11-14)
F13
Page 56
County obligations for retirement funding is the sum of the unpaid POB balance by the County plus MCERA’s UAAL, as reported each year. (See Appendix C, Chart 1).
Related Recommendations (1)
R1
Page 54
the Auditor-Controller publish yearly a County Retirement Funding report to summarize the status of assets and liabilities of both the County and of MCERA, and to present the actual total numbers for the previous five years and projections for the upcoming five years, based upon current performance. (See Appendix C, Table 1). (Findings 7, 8, 11-14)
F14
Page 56
As of 2005, the remaining debt owed to investors of the POB is approximately $99,930,000.7
Related Recommendations (1)
R1
Page 54
the Auditor-Controller publish yearly a County Retirement Funding report to summarize the status of assets and liabilities of both the County and of MCERA, and to present the actual total numbers for the previous five years and projections for the upcoming five years, based upon current performance. (See Appendix C, Table 1). (Findings 7, 8, 11-14)
F15
Page 56
The Pension Trust Fund statements reflect total assets of $288,238,797 as of June 30, 2005.8
No recommendations for this finding
F16
Page 56
As of June 30, 2005, there were 809 retirees with an annual pension allocation of $12,013,000. This averages $14,849 per individual per year.9
No recommendations for this finding
F17
Page 56
Retirement-related outlays (pensions, health insurance, POB interest and principal) make up approximately 10 % of the County's annual budget.
No recommendations for this finding